The networking giant discussed the price hikes on its Q2 2026 earnings call, during which CEO Chuck Robbins said Cisco has already announced price increases and will "continue to monitor market trends and make additional adjustments as necessary." The CEO said Cisco is also "revising contractual terms with channel partners and customers to address evolving component prices," and is using its scale to "help us negotiate favorable terms and secure supply to fulfill current and future demand."
"We have a line of sight to drive approximately $1 billion of gross run rate savings over three years across product development, customer service and support, and many of our operational processes," he said. The company's results announcement [PDF] states the aims of the new cost-cutting program are "to drive customer satisfaction, product innovation, and productivity through artificial intelligence adoption and enablement." Or in other words, replacing about ten percent of the company's people with AI, to save $1 billion.